The agreement, which initially runs over five years, has a total estimated value of approximately RMB61.5 million.
To date, China Sky One has been selling five of its prescription drugs through Baolong’s distribution network, which it expects will generate sales of approximately RMB20.5 million from August 2008 to December 2008.
Yan-Qing Liu, chairman, CEO and president of China Sky One Medical, said: “We are confident that our move into the prescription drug market via Baolong’s strong distribution channel represents a solid opportunity for future growth and can ultimately help us expand our market share and increase profitability going forward.”